Which of the following best defines a positive network externality?
a. a strategy that will be optimal regardless of opponents’ actions
b. an increase in a consumer’s quantity demanded for a good because a greater
number of other consumers are purchasing the good
c. the study of strategic interactions among economic agents
d. an increase in a consumer’s demand for a good because fewer consumers are
purchasing the same good
b. an increase in a consumer’s quantity demanded for a good because a greater
number of other consumers are purchasing the good
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Given the demand function in log-linear form: Q = 120 - 1.5P + 12ADV where Q = quantity, P = price, and ADV = advertising expenditures, what is the price elasticity?
A) 1.5, inelastic B) -1.5, elastic C) 120, elastic D) 12, elastic
If people expect inflation to occur, they will make more consumption purchases today
Indicate whether the statement is true or false
Large denomination time deposits are included in
A. M2 only. B. M3 only. C. M2 and M3. D. M1 and M2. E. M1, M2, and M3.
When OPEC raised the price of oil, it created a:
A. demand-pull inflation. B. cost-push inflation. C. demand-push inflation. D. cost-pull inflation.